SUDBURY, ON, Nov. 24, 2017 /CNW/ - Canadian Gold Miner
Corp. ("CGM" or the "Company") and Transition Metals Corp.
(a 40% owner of CGM; XTM – TSX.V, "Transition") are pleased to
announce that CGM has today concluded a transaction with Osisko
Mining Inc. ("Osisko") to acquire the DeSantis property, a
historical gold producer located in the heart of the Timmins Gold
Camp, and an option on the Catharine Property, a large exploration
land package near CGM's focus area south of Kirkland Lake, Ontario in exchange for 2.5
million common shares of CGM valued at $0.20 per share. Concurrent with the transaction,
Osisko also has completed a $1.0
million private placement in CGM consisting 5.0 million
units priced at $0.20 with each unit
consisting of a common share and a half common share purchase
warrant exercisable at $0.35 for a
period of two years.
Commenting on the transaction, CGM CEO Greg Collins states "We are pleased to have
Osisko's support as a significant shareholder as we look to
aggressively advance our portfolio of gold projects in Ontario. In addition to adding two properties
with good exploration potential to our portfolio, we view the
transaction as a significant milestone that should help us attract
additional investment interest and accelerate our ability to create
value moving forward."
Osisko now owns approximately 19.9% of the issued and
outstanding common shares of CGM with Transition retaining a 39.9%
ownership interest. Additionally, Osisko retains rights to: (i)
maintain its equity interest in CGM on a pro-rata basis in
subsequent financings; (ii) appoint a director to the board of CGM,
(iii) a first right of refusal on any additional royalties that CGM
may sell on the DeSantis or Cote properties in the future; and (iv)
a first right of offer on any royalties that CGM proposes to sell
on its existing properties (South
Kirkland, West Matachewan,
Elephant Head, Jumping Moose and Golden
Elk), as long as it retains a 9.9% equity interest in
CGM.
About Canadian Gold Miner Corp
Canadian Gold Miner Corp. is a private Canadian corporation
focused on exploring for gold in the Larder Lake Mining District
near Kirkland Lake. The Company
was founded by Transition to leverage its data, expertise and
extensive portfolio of high quality gold projects within the
district. CGM has now assembled a dominant land position in excess
of 215 square kilometres around the Cadillac Larder, Lincoln-Nipissing and Ridout structures in the
southwestern part of the prolific Abitibi Greenstone belt in
Ontario. The Abitibi Greenstone
belt is Canada's most prolific
gold district with excellent mining infrastructure in place.
About Transition Metals Corp
Transition Metals Corp. (XTM -TSX.V) is a Canadian-based,
multi-commodity project generator that specializes in converting
new exploration ideas into Canadian discoveries. The award-winning
team of geoscientists has extensive exploration experience in
established, emerging and historic mining camps, and actively
develops and tests new ideas for discovering mineralization in
places that others have not looked, which often allows the company
to acquire properties inexpensively. The company has an expanding
portfolio that currently includes gold, copper, nickel and platinum
projects primarily in Ontario,
Nunavut, British Columbia, Saskatchewan and Minnesota that it seeks to advance through
funding partnerships and subsidiary companies to maximize
shareholder value. With completion of this transaction,
Transition's ownership interest in CGM has been reduced to
approximately 39.9%.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the
information in this news release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
estimated capital and operating costs, expected production
timeline, benefits of updated development plans, foreign exchange
assumptions and regulatory approvals. There can be no assurance
that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors
that could cause actual results to differ materially include, among
others, metal prices, competition, risks inherent in the mining
industry, and regulatory risks. Most of these factors are outside
the control of the Company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the
Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Transition Metals Corp.